ANALOGUE TARIFF REVISION: Analogue TV Tariffs

ANALOGUE TARIFF REVISION: Analogue TV Tariffs 100W 200W 1kW 2kW Equipment Cost R 403 680 R 453 680 R 648 689 R 691 121 Tariff Summary Depreciation (Capex) R 3 364 R 3 781 R 5 406 R 5 406 Cost of Capital (WACC) R 2 571 R 2 889 R 4 131 R 4 401 Ops and Support Costs R 3 869 R 4 348 R 6 217 R 7 460 Energy R 102 R 205 R 1 024 R 2 048 Accommodation Charge R 54 R 54 R 54 R 54 Pass-Through Costs R 12 381 R 12 381 R 12 381 R 12 381 Monthly Tariff R 22 341 R 23 657 R 29 212 R 31 750 SENTECH SOC LIMITED Analogue Tariff Revision March 2012 11

ANALOGUE TARIFF REVISION: Community Television Tariffs Comparison Comparison (TV) 100W 200W 1kW 2kW Standard Tariff 2011/12 R 22 729 R 32 413 R 52 312 R 44 647 Standard Tariff 2012/13 R 24 457 R 34 872 R 56 282 R 70 677 Proposed Community Tariff R 22 341 R 23 657 R 29 212 R 31 750 % Change (2011/12) -2% -27% -44% -29% % Change (2011/13) -9% -32% -48% -55% SENTECH SOC LIMITED Analogue Tariff Revision March 2012 22

ANALOGUE TARIFF REVISION: Television Revenue - Customer Impact CUSTOMER 2011/12 ANNUAL INCOME 2012/13 BUDGETED ANNUAL INCOME REVISED ANNUAL INCOME CHANGE VS 2011/12 CHANGE VS 2012/13 BUDGET % CHANGE VS BUDGET NELSON MANDELA BAY TV R 535 764 R 437 792.47 R 381 002.57 -R 154 761 -R 56 790-13% CAPE TV R 726 636 R 550 384 R 402 010 -R 324 626 -R 148 374-27% TSHWANE TV R 672 545 R 721 819 R 386 210 -R 286 335 -R 335 609-46% SOWETO TV R 810 672 R 464 060 R 381 003 -R 429 669 -R 83 057-18% TOTAL R 2 209 853 R 1 736 263 R 1 169 222 -R 1 040 631 -R 567 041-33% SENTECH SOC LIMITED Analogue Tariff Revision March 2012 33

ANALOGUE TARIFF REVISION: Tariff Calculation Model 10W FM Cost of Capital R 40 000 Depreciation (CAPEX) Annual Cost Mark-up Annual Tariff Monthly Tariff 10 years R 4 000 R 200 R 4 200 R 350 Cost of Capital Operational Cost 12.61% WACC R 3 057 R - R 3 057 R 255 5% of Capex R 2 000 R 100 R 2 100 R 175 Energy R 1.22 per KWh R 106.87 R 5 R 112 R 9 Assumptions Comparison R 2 225 Asset Base R 2 225 R 111 R 2 336 R 195 Network WACC Access Charge 12.61% Standard Tariff 2011/12 R 6 297 Depreciation (years) 10 Standard Tariff 2012/13* R 2 237 R 13 671 Proposed R Community 13 671 Tariff R - R R 132 671 123 Pass-Through Markup - Opex Costs 5% R 1 139 Markup - Capex 5% R 25 059 R 417 R 25 476 Tarifff Markup excl - Network VAT Access 5% % Change from 2011/12-66% R 2 123 Markup (ave) 2% % Change from 2011/12-5% Ops as % of Capex 5% SENTECH SOC LIMITED Analogue Tariff Revision March 2012 44

ANALOGUE TARIFF REVISION: Analogue FM Tariffs 10W 20W 50W 100W 300W 500W 1KW Equipment Cost R 40 000 R 40 000 R 66 000 R 66 000 R 166 000 R 166 000 R 221 000 Tariff Summary Depreciation (Capex) R 350 R 350 R 605 R 605 R 1 522 R 1 522 R 2 026 Cost of Capital (WACC) R 255 R 255 R 420 R 420 R 1 057 R 1 057 R 1 407 Ops and Support Costs R 175 R 175 R 633 R 633 R 1 591 R 1 591 R 2 118 Energy R 9 R 19 R 51 R 102 R 307 R 512 R 1 024 Accommodation Charge R 195 R 195 R 204 R 204 R 204 R 204 R 204 Pass-Through Costs R 1 139 R 1 139 R 1 253 R 1 253 R 1 253 R 1 253 R 1 253 Monthly Tariff R 2 123 R 2 132 R 3 166 R 3 217 R 5 934 R 6 139 R 8 032 SENTECH SOC LIMITED Analogue Tariff Revision March 2012 55

ANALOGUE TARIFF REVISION: FM - Customer Impact (Non Sponsored) COMMUNITY RADIO 2011/12 REVENUE 2012/13 BUDGETED REVENUE COMMUNITY TARIFF REVENUE CHANGE VS 2011/12 REVENUE CHANGE VS 2012/13 BUDGET % CHANGE VS 2011/12 Voice of the Cape 41 805 38 201 26 657-15 148-11 544-36% Fine Music Radio 41 285 36 333 24 621-16 664-11 712-40% Rippel 12 496 12 036 7 731-4 765-4 305-38% Christelike Radio 18 918 18 843 11 815-7 103-7 028-38% Link FM 8 723 8 036 6 382-2 341-1 654-27% Hindi Shiksha Sangh 26 901 10 465 14 917-11 984 4 452-45% Kragbron 28 340 16 738 12 430-15 910-4 308-56% Eden 47 924 23 967 26 122-21 802 2 155-45% Kovsie 13 173 12 754 7 615-5 558-5 139-42% Laeveld 20 655 21 895 10 536-10 119-11 359-49% Chai 16 089 10 465 8 983-7 106-1 482-44% Tuks 10 320 9 729 7 615-2 705-2 115-26% SENTECH SOC LIMITED Analogue Tariff Revision March 2012 66

ANALOGUE TARIFF REVISION: FM - Customer Impact (DoC Sponsored; Sentech Equipment) COMMUNITY RADIO 2011/12 REVENUE 2012/13 BUDGETED REVENUE SENTECH SOC LIMITED Analogue Tariff Revision March 2012 COMMUNITY TARIFF REVENUE CHANGE VS 2011/12 REVENUE CHANGE VS 2012/13 BUDGET 77 % CHANGE VS 2011/12 Bush Radio 10 271 9 677 7 083-3 188-2 594-31% Islamic Unity 8 073 10 199 6 266-1 807-3 933-22% Khwezi 19 402 21 067 14 299-5 103-6 768-26% Soshanguve 8 614 7 921 6 266-2 348-1 654-27% Namaqualand 13 588 8 149 6 495-7 093-1 654-52% Radio KC 8 614 7 921 6 266-2 348-1 655-27% Barberton 9 828 9 377 6 215-3 613-3 162-37% N-FM 20 655 14 492 10 536-10 119-3 955-49% Star 16 089 10 465 8 983-7 106-1 482-44% Mafikeng 20 212 14 835 12 046-8 166-2 789-40% West Coast 5 791 5 895 8 983 3 192 3 088 55% Mash 13 172 12 753 7 615-5 557-5 139-42% Sekgogese 16 090 10 466 8 983-7 107-1 483-44% Umgungundhlovu 18 500 13 021 10 331-8 169-2 689-44% Village 19 371 13 946 11 259-8 112-2 687-42% Silambu 1 915 2 030 3 049 1 134 1 019 59% Khanya 3 608 5 890 6 266 2 658 376 74% CC FM 13 903 13 101 9 786-4 117-3 316-30% Helderberg 14 410 14 065 8 925-5 485-5 140-38% Izwilomzansi 18 244 11 936 9 188-9 056-2 748-50% UJ 14 828 14 677 7 564-7 264-7 114-49%

ANALOGUE TARIFF REVISION: FM - Customer Impact (DoC Sponsored; DoC Equipment) COMMUNITY RADIO 2011/12 REVENUE 2012/13 BUDGETED REVENUE SENTECH SOC LIMITED Analogue Tariff Revision March 2012 COMMUNITY TARIFF REVENUE CHANGE VS 2011/12 REVENUE CHANGE VS 2012/13 BUDGET 88 % CHANGE VS 2011/12 Newcastle 3 608 5 890 2 911-697 -2 979-19% Vaaltar 3 290 5 068 2 860-430 -2 209-13% Mosupatsela 3 290 5 068 2 860-430 -2 209-13% Maputaland 7 424 7 627 6 858-566 -770-8% Voice of Thembisa 3 571 4 605 2 192-1 379-2 413-39% Gamkaland 10 338 8 716 5 422-4 916-3 294-48% Naledi 6 248 6 156 4 074-2 174-2 082-35% Qwaqwa 3 608 5 890 2 911-697 -2 979-19% Setsoto 3 031 4 749 2 876-155 -1 873-5% Vukani 19 327 13 429 11 526-7 801-1 903-40% Takalani 3 608 5 890 2 911-697 -2 979-19% TUT 3 210 4 605 2 192-1 018-2 413-32% Nkqubela 5 502 6 653 2 911-2 591-3 742-47% Orange Farm 5 791 5 895 4 074-1 717-1 821-30% Alfred Nzo 26 899 15 336 14 917-11 982-419 -45% Inanda 10 099 7 634 4 279-5 820-3 355-58% Vibe 7 930 6 162 4 074-3 856-2 089-49% Motheo 17 767 12 159 5 318-12 449-6 841-70% Ubuhlebeshowe 10 099 7 634 4 279-5 820-3 355-58% Karabo 12 509 10 188 5 627-6 882-4 561-55% Inkonjane 14 223 12 833 9 120-5 103-3 714-36% Sunny South 4 428 5 896 2 911-1 517-2 986-34% Ekhephini 4 428 5 896 2 911-1 517-2 986-34% Unitra 3 608 5 890 2 911-697 -2 979-19%

ANALOGUE TARIFF REVISION: Community FM Tariffs Comparison Comparison (FM) 10W 20W 50W 100W 300W 500W 1KW Standard Tariff 2011/12 R 6 297 R 3 094 R 4 551 R 5 486 R 10 810 R 12 966 R 22 801 Standard Tariff 2012/13 R 2 237 R 3 279 R 4 824 R 5 816 R 11 387 R 13 817 R 24 169 Proposed Community Tariff R 2 123 R 2 132 R 3 166 R 3 217 R 5 934 R 6 139 R 8 032 % Change (2011/12) -66% -31% -30% -41% -45% -53% -65% % Change (2012/13) -5% -35% -34% -45% -48% -56% -67% SENTECH SOC LIMITED Analogue Tariff Revision March 2012 99

SENTECH SOC Limited

CONSIDERATIONS FOR EXPANDING DTT COVERAGE: April 2012 Click to edit Master subtitle style

NETWORK DESIGN CONSIDERATIONS Transmitter network (design layers) High and medium power sites (currently there are about 183 of such sites) Additional gap filler and low power sites to cater for some loss of coverage and increase penetration Replace several analogue low power sites next to each with up to 100W gap filler sites can be part of existing SFNs where applicable Replace analogue low power sites in remote areas and covering a small area with low power DTT sites (2W to 10W) Decoders/ set-top boxes for both terrestrial and DTH Modifications in the current deployment to cater for some loss of coverage To further increase power levels this may require some swapping of transmitters, hence minimum cost Digital-to-digital migration to allow further digital dividends Catering for community broadcasters on both core and distribution levels Opportunity cost due to under utilization of multiplexes SENTECH SOC LIMITED Considerations For Expanding DTT Coverage_April 2012 1212

TECHNICAL CONSIDERATIONS SENTECH s sites for the analogue TV signal are configured to either have VHF frequencies only, UHF frequencies only or both: 21 sites are both UHF and VHF 19 sites are VHF only, and 141 sites are UHF only DTT is only implemented on UHF which consist of higher frequencies than VHF. This means that while it is generally possible to replicate analogue UHF coverage in the DTT environment, it is technically not possible to the same for analogue VHF to be replicated by DTT in the UHF without considerably increasing the power levels. It has been possible to make small gains in some previously analogue UHF areas (that is DTT covering more than the analogue signal covered). However, while the net result is an increase in population coverage, this denies access to a section of a population that previously received the VHF analogue signal. SENTECH SOC LIMITED Considerations For Expanding DTT Coverage_April 2012 1313

TECHNICAL CONSIDERATIONS Analogue in VHF DTT in UHF Analogue in UHF SENTECH SOC LIMITED Considerations For Expanding DTT Coverage_April 2012 1414

SENTECH SOC Limited

BROAD-BASED BLACK ECONOMIC EMPOWERMENT: April 2012 Click to edit Master subtitle style

TOTAL PROCUREMENT TOTALPROCUREMENTSPENTONVARIOUSLEVELOFBEEFORTHEPERIODFY2011/2012 BEELevel TotalProcurement %vstotal spend %CAPEXspendon BEELevel1to4 %CAPEXspend onbeelevel1to 5 1 R20472770,06 15,08 2 R1949274,43 1,44 3 R36353616,32 26,79 4 R19547326,27 14,40 57,71 5 R1079503,61 0,80 62,14 6 R1443572,36 1,06 7 R51889,05 0,04 8 R3433097,58 2,53 NON BEE R12908683,92 9,51 9,51 9,51 FOREIGN R38478377,49 28,35 28,35 28,35 Total R135718111,09 100,00 100,00 100,00 SENTECH SOC LIMITED Broad-Based Black Economic Empowerment_April 2012 1717

DTT PROCUREMENT DTTSPENTONVARIOUSLEVELOFBEEFORTHEPERIODFY2011/2012 BEELevel DTT %vstotalspend %CAPEXspend onbeelevel1 to4 %CAPEXspend onbeelevel1 to5 %DTTSpentin relationtototal procurement 1 R11727201,03 20,97 8,64 2 R388175,83 0,69 0,29 3 R1313091,09 2,35 0,97 4 R4963654,91 8,88 32,89 3,66 5 R231540,00 0,41 38,17 0,17 6 R366349,38 0,66 0,27 7 R47412,02 0,08 0,03 8 R2307197,12 4,13 1,70 NON BEE R1971193,94 3,53 1,45 FOREIGN R32600607,94 58,30 24,02 Total R55916423,26 100,00 SENTECH SOC LIMITED Broad-Based Black Economic Empowerment_April 2012 1818

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LOW POWER POPULATION STATISTICS: April 2012 Click to edit Master subtitle style

LOW POWER POPULATION STATISTICS Province Additional % coverage per province - Radio Additional % coverage per province - TV Additional % on total population - Radio Additional % on total population - TV Population per province Total Population Radio Total Population TV In Service Eastern Cape 0,29% 0,49% 0,04% 0,07% 6 743 800 23 310 Free State 1,16% 2,27% 0,07% 0,13% 2 824 500 52 835 Kwazulu Natal 1,20% 1,56% 0,25% 0,33% 10 645 400 176 075 Limpopo 1,55% 2,11% 0,17% 0,23% 5 439 600 108 528 Mpumalanga 0,18% 0,56% 0,01% 0,04% 3 617 600 21 776 Northern Cape 0,01% 0,09% 0,00% 0,00% 1 103 900 772 North West 0,22% 0,48% 0,01% 0,03% 3 200 900 9 505 Western Cape 0,10% 0,47% 0,01% 0,05% 5 223 900 9 555 Sub - total 402 356 Ready For Service Kwazulu Natal 0,02% 0,44% 0,00% 0,09% 10 645 400 2 952 Limpopo 0,00% 0,01% 0,00% 0,00% 5 439 600 0 North West 0,11% 0,39% 0,01% 0,03% 3 200 900 4 381 Sub - total 7 333 32 847 64 048 166 099 114 966 20 342 944 15 491 24 347 439 084 46 741 426 12 608 59 775 SENTECH SOC LIMITED Low Power Population Statistics_April 2012 2121

LOW POWER POPULATION STATISTICS Province Additional % coverage per province - Radio Additional % coverage per province - TV Additional % on total population - Radio Additional % on total population - TV Population per province Total Population Radio Total Population TV New Sites planned for 2012/2013 financial year Eastern Cape 0,43% 0,26% 0,06% 0,04% 6 743 800 34 883 Free State 0,31% 0,88% 0,02% 0,05% 2 824 500 21 972 Kwazulu Natal 0,12% 0,08% 0,03% 0,02% 10 645 400 20 947 Limpopo 2,85% 4,42% 0,31% 0,48% 5 439 600 178 815 Mpumalanga 1,57% 3,89% 0,11% 0,28% 3 617 600 67 783 Northern Cape 0,32% 0,34% 0,01% 0,01% 1 103 900 3 137 North West 0,55% 1,09% 0,04% 0,07% 3 200 900 18 190 Western Cape Sub - total 0,20% 0,65% 0,02% 0,07% 5 223 900 14 477 360 204 Self-help station refurbishment planned for 2012/2013 financial year Eastern Cape 0,15% 0,24% 0,02% 0,03% 6 743 800 20 525 Free State 0,05% 0,24% 0,00% 0,01% 2 824 500 4 217 Kwazulu Natal 0,06% 0,18% 0,01% 0,04% 10 645 400 15 304 Limpopo 0,00% 0,00% 0,00% 0,00% 5 439 600 0 Mpumalanga 0,01% 0,06% 0,00% 0,00% 3 617 600 1 888 Northern Cape 0,98% 2,82% 0,02% 0,06% 1 103 900 18 952 North West 0,00% 0,00% 0,00% 0,00% 3 200 900 0 Western Cape 0,08% 0,24% 0,01% 0,03% 5 223 900 7 636 Sub - total Total 68 522 838 415 17 580 24 746 8 816 240 231 140 837 3 770 34 929 33 738 504 647 15 947 6 783 18 875 0 2 037 31 182 0 12 676 87 500 1 091 006 SENTECH SOC LIMITED Low Power Population Statistics_April 2012 2222

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LOW POWER DTT IMPLEMENTATION: April 2012 Click to edit Master subtitle style

LOW POWER DTT IMPLEMENTATION: Approach Design and development of specs for next generation Low Power sites consisting of DVB-T2 transmission along the line of industrialization policy framework (April May): Specify physical form-factor design to allow addition of low power DVB-T2 transmitters within the same enclosure used currently Develop specifications for three scenarios: Scenario 1: Replacing analogue low power TV transmitters and accessories on installed sites with low power DVB-T2 transmitters and accessories for at least two Multiplexes Scenario 2: Inserting low power DVB-T2 transmitters and accessories for at least two Multiplexes in sites with FM transmitters only Scenario 3: Next Generation Low Power sites: low power DVB-T2 transmitters and low power FM transmitters Identify opportunities for industrialization in the Low Power Low Cost DTT project for various phase of the project and incorporate this as part of specifications Remove analogue TV transmitters and associated components from current deployment of low power low cost sites by August 2012 First phase deployment from January 2013 Technology absorption local design and product development/commercialisation from January 2013 Further development and reaching out to SADC and the rest of Africa from January 2014 SENTECH SOC LIMITED Low Power DTT Implementation_April 2012 2525

LOW POWER DTT IMPLEMENTATION: Implementation Plan June Aug 2012: Procurement April process May 2012: RFI/RFP R&D and Proof enterprise September of Concept development 2013 and onwards: supplier frameworks Further contract August deployment including 2012 based on Dec possible agreed and 2013: reach call R&D Cease to out Jan and participate to installation 2013 enterprise SADC December and of the development the analogue framework rest 2013: of low Africa First fram pow p Driven by SA Industrial Policy Framework and Job Creation SENTECH SOC LIMITED Low Power DTT Implementation_April 2012 2626

LOW POWER DTT IMPLEMENTATION: Current Configuration Of Low Power Sites Each site typically consists of 3 TV services and 2 FM services in an enclosure of 1300mm x 800mm x 240mm Major components that may not be re-usable in a DTT environment are: TV Transmitters x3 per site at R25, 000 each Satellite IRDs x3 per site at R4 500 each Small flat-screen TV receive monitor (may not required in future operating model) per site at R1,500 Removing the above non re-usable components from a total of 42 sites will result in minimum cost reduction R1.3 million in the current deployment (see spreadsheet) In a similar vein a total of about R2 million would have to be written off (assuming an accumulation of 67 low power sites recently deployed) The above calculations excludes self-help sites SENTECH SOC LIMITED Low Power DTT Implementation_April 2012 2727

LOW POWER DTT IMPLEMENTATION: Low Power DTT Sites Technical Options Off-air received DVB-T2 re-transmit On-channel repeater SFN repeater MFN repeater Satellite fed DVB-T2 transmitter (The transmitter can be part of an SFN or separate) DVB-IP fed (Optic Fibre or microwave) Currently the satellite fed DVB-T2 transmitter is the most feasible, due to the fact that the signal is readily available, followed by DVB-IP fed through microwave SENTECH SOC LIMITED Low Power DTT Implementation_April 2012 2828

LOW POWER DTT IMPLEMENTATION: Low Power DTT Sites High Level Technical Design DVB- S2 National TV Content Rx/ Gateway Regional TV Content Rx/ Gatway ASI/I P DVB-T2 Remux DVB- T2 Low Power DTT Tx and diplexer 470 790 MHz FM content Rx Low Power FM Tx and diplexer FM band Power and UPS Air Cooling NMS equipment Other SENTECH SOC LIMITED Low Power DTT Implementation_April 2012 2929

LOW POWER DTT IMPLEMENTATION: Indicative Cost/Investment Item/task Indicative price KU-antenna 5,000 Gateways/Receivers 20,000 Remux 160,000 GPS 60,000 TV Transmitter 10W (1Mux) 150,000 Mast+Civils 50,000 Antenna + Cable 70,000 Fitted container 120,000 Civil 20,000 Electrical+UPS 30,000 Fence and security 20,000 FM Txs 30,000 PM and installation costs 85,000 Other 180,000 Total (ZAR) 1,000,000 Assuming 500 sites, risk factor and R&D - 10% and 5 year rollout period we are estimating a budget R550 million SENTECH SOC LIMITED Low Power DTT Implementation_April 2012 3030

SENTECH SOC Limited